Legal Status

The Deposit and Savings Insurance Fund of Tajikistan (hereinafter referred to as the Fund) was established based on the Law of the Republic of Tajikistan “On Deposit and Savings Insurance.” Its primary objective is to protect the rights and lawful interests of depositors by paying insurance compensation and strengthening public trust in the banking system of the Republic of Tajikistan.

The Fund is a non-commercial legal entity with an independent balance sheet, a seal, and operates based on its charter approved by its founders. The Fund’s purpose is to protect depositors’ deposits and savings from the risk of bankruptcy of credit institutions.

In the event of an insurance case at a credit institution, the Fund is obliged to compensate the insured funds of depositors. Banks and microcredit deposit organizations that are members of the Fund are listed in the Register of Credit Institutions of the Deposit and Savings Insurance System and hold a Membership Certificate. Deposit and savings insurance is provided by credit institutions, and depositors incur no costs as all expenses for insurance are borne by the credit institutions.

Mission

The Fund’s mission is to:

Protect the rights and lawful interests of depositors through the payment of insurance compensation.

Ensure the functioning of the deposit and savings insurance system.

Contribute to the stability of the financial system and strengthen public trust in the banking system of the Republic of Tajikistan.

Vision

To be an effective and successful deposit and savings insurance organization, fulfilling its mission while considering the best global practices.

Values

The key values and principles guiding the Fund’s activities are:

Social orientation Transparency Professionalism Integrity.

Financial responsibility.

Main Functions

To achieve its goals, the Fund performs the following functions:

• Timely determination and payment of insurance compensation to depositors.
• Maintains the registry of credit institutions that are members of the Fund.
• Collects and accounts for payments received from credit institutions and monitors the timeliness of payments.
• Receives necessary information, reports, and data from credit institutions.
• Invests, manages, and places the Fund’s assets to accumulate the Fund’s property.
• Participates through financing in the restructuring of a credit institution, including transferring insured deposits and savings to another credit institution, including an intermediary bank, to fulfill insurance obligations.
• Requests the Government of the Republic of Tajikistan for borrowing funds in case of Fund deficiencies.
• Requests the National Bank of Tajikistan to take corrective actions and measures against credit institutions that do not comply with the Law.
• Issues orders to credit institutions as necessary and demands their implementation within the law.
• Issues normative acts (rules, instructions, etc.) and enforces their implementation.
• In order to maintain public trust in the banking system of the Republic of Tajikistan, informs the public by ensuring deposit and savings guarantees.
• Performs other functions necessary to achieve the Fund’s goals.

Fund Resources

According to the Law of the Republic of Tajikistan “On Deposit and Savings Insurance,” the Fund’s resources come from:

• Payments from credit institutions that are members of the Fund.
• Income from investments.
• Borrowed funds, including money borrowed from the Government of the Republic of Tajikistan.
• Funds received from fulfilling the Fund’s obligations, including payments to depositors whose interests have been transferred to the Fund in accordance with the Law.
• Other receipts not prohibited by law.

The Fund’s resources are kept in accounts at the National Bank of Tajikistan. Insurance compensation is paid to depositors from these funds in the event of an insurance case. The maximum amount of the Fund’s resources is set at seven percent of the total amount of insured deposits and savings held in member credit institutions.

Investment Activities

To accumulate its assets, the Fund conducts investment activities and manages and allocates its funds according to its investment policy. The Fund may invest its resources in the following financial instruments:

• Government securities of the Republic of Tajikistan.
• Securities of the National Bank of Tajikistan.
• Securities of foreign governments or foreign central (national) banks with a high investment rating.
• Deposits at the National Bank of Tajikistan in national and foreign currencies.
• Securities of international financial organizations with one of the two highest ratings from rating agencies.
• Securities of international financial organizations in which the Government of the Republic of Tajikistan is a shareholder.

The Fund prioritizes investments based on the following principles: 1) Safety; 2) Liquidity; and 3) Profitability.